Extended Guarantee on Items

Q: Is it permissible when purchasing an item to purchase an extended guarantee? Normally the guarantee is for one year, but pay an extra R250 (for example) and it will be extended to 3 years.

A: If this amount is included in the overall price, which amount is paid at the time of collecting the item, then such a deal is permissible. In other words, at the time of taking possession of the article, one pays a single price inclusive of all costs related to the article. If this extra amount is paid separately or after taking the possession of the article then it is not lawful.